Indymac collapses

[c w d]

http://www.nytimes.com/2008/07/12/b...bl&ex=1216008000&en=48af597fcdabd556&ei=5087

Senator Dodd was seen on CNN this morning stating that he doesn't know why people paniced because the current economy is fundamentally strong.

Sorry, but if people want to remove their money from a bank and that in turn prompts stock owners to withdraw their investment, sounds like it's rather precarious.

I'm very concerned. Looking at the mortgage companies and other smaller banks that have quietly disappeared over the past 2 years I think we're in a very dangerous time when one of the largest banks in the country goes down. While the TV news media has highlighted a few of these instances one would have to aggregate the entirety of printed news to get a better picture of the current situation which just is not practical for the average person. Statements like Dodd's "fundamentally strong economy" are eerily similar to Bush's "fundamentally strong economy" statement. I wouldn't for one minute leave my wallet alone with either one. So, what we have is a situation that our leaders are telling us everything is fine even in light of the obvious and known problems. What makes this dangerous for us all is the unknown or the not easily knowable of which the media makes no effort to bring to the forefront. In fact, the Indymac fiasco got a 30 second blurb but the 41 year old olympic swimmer gets a 3 minute slot. I'm taking my accounts out of bank and it's going into my pillow. I have no faith that we'll know whats going on until it's too late.

 

[Workbox]

CWD, I get all my news and economic updates from this Forum and others I trust. They are a pulse of what is really happening I have learned that the big networks are keeping so much in the dark until it is to late.

OK, so where are they putting their money now? In better banks? or in a tin can? I am not an expert, but anybody can correct me on this. But wasn't IMB a spin off from Mortgage Company (Countrywide) but set up as a bank? Or was it a Bank first, that became a mortgage company?

 

[Couch Potato]

Senator Dodd was seen on CNN this morning stating that he doesn't know why people paniced because the current economy is fundamentally strong.

Dodd is just trying to cover for his friend, Senator Schumer, who triggered the run on IndyMac. The bank had problems, but would not have failed without the withdrawal of $1.2 billion in deposits initiated by the letter from that doofus from New York.

 

[c w d]

Couch, that's the problem. If one letter can do that then we can't really say that the economy is "fundamentally strong". Can we? The participants in an economy must have the perception that it is strong. It doesn't matter how many times our leaders and news networks say it, if the other participants don't feel as if they're own positions are strong then the economy can't be. After all, one is dependent on the other. The state of the economy is dependent on it's participants. With the disaster that is our real estate market most people are seeing their net worth deflate by 1% per month since most people's largest investment is their home. If you listen to the congress men and women and listen to the news outlets and listen to the corporations and listen to the economic analysts then you hear time and again, at least by those not labeled anything that would shed doubt on their opinions, that the economy is fundamentally strong that other sectors are doing just fine. However, regardless of what they believe or what they would have us believe corporations are not necessarily an accurate indication of fundamentals. The people are the fundamental basis of the economy since most all corporations can attribute their earning potential and performance to the little folk, even business to business corps with few exceptions. Oh sure, energy, health, military industrial, those corporations that are heavily invested in producing products and services overseas are doing well. But that doesn't exactly reflect the realities of the economy most important to us. So if the people don't feel like they're doing well then how can the economy being doing well? It can't. And I'm pretty sure us little people know when we're doing well and when we're not. The government can remove whatever statistics it wants from it's measures of economic prosperity but, that kind of manipulation only goes so far. And I feel we may have very well reached the end point of effectiveness for that kind of propaganda. If one could measure the level of deposits of banks I wouldn't be surprised if on Monday the level of withdrawals accelerates. I'm going in Monday to remove a large portion but, still maintaining my accounts to handle my bills. Maybe I'm paranoid but, the current situation has 1929 written all over it in my opinion. Perhaps we're not at that point yet. At present I would feel safer having more liquidity should it really hit the fan. If it does, then we won't know about it until we've reached the point that our money is no longer accessible to us. And I don't care about FDIC insured banks. The FDIC has worked well in the past. How is it going to work in a full banking meltdown? I don't know. And it's what I don't know that bothers me the most.

 

[Couch Potato]

Couch, that's the problem. If one letter can do that then we can't really say that the economy is "fundamentally strong". Can we?
...

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The FDIC has worked well in the past. How is it going to work in a full banking meltdown? I don't know. And it's what I don't know that bothers me the most.

IMHO, the economy is "fundamentally in the toilet."

I think your concern is justified to a point. However, what makes you think the money you withdraw will be worth any more than confederate money in 1875?

 

[LA Woman]

Again: Complete Collapse of US Financial Market expected

American 'Meltdown' Reason for Capital Raising - Fortis
28th of June, 9:10
De Financiële Telegraaf

Fortis Bank predicts US Financial market meltdown within weeks...

BRUSSELS/AMSTERDAM - Fortis expects a complete collapse of the US financial markets within a few weeks. That explains, according to Fortis, the series of actions by the bank of last Thursday to raise €8 billion. "We have been saved just in time. The situation in the US is much worse than we had thought", says Fortis chairman Maurice Lippens. Fortis expects bankruptcies amongst 6000 American banks which have a small coverage currently. But also with Citigroup, General Motors, a complete meltdown in the US is beginning."

 

[Hamlet]

IMHO, the economy is "fundamentally in the toilet."

I think your concern is justified to a point. However, what makes you think the money you withdraw will be worth any more than confederate money in 1875?

Good point! We need to all take our money out and buy beans and ammo now. Any left over we can by Z stock.

 

[Alison Swain]

That Z stock is a real bargain these days from what I hear.

 

[Couch Potato]

That Z stock is a real bargain these days from what I hear.

It's more expensive than I thought. :new_all_coholic: Apparently that "C" on the price stands for "Canadian" not "Confederate."

 

[MARK JOLLIFF]

I've got a portion in etf's shorting the market like SDS which shorts the S&P. A portion in the Merk Hard Currency Fund which holds a basket of foreign currencies. It's a dollar play and a portion in Gold and the rest cash. Good luck to all. The bunker door is now closing!